Nalanda India Equity Fund Ltd, an arm of Nalanda Capital India Advisors Pvt. Ltd, a Singapore-based investment firm floated by former Warburg Pincus executive Pulak Prasad, has picked up a stake in listed apparel manufacturer TCNS Clothing Co. Ltd, which owns the W brand of womenswear.
Nalanda bought 43.2 lakh shares in a bulk deal on the National Stock Exchange at Rs 412.31 (about $5.66) apiece on Wednesday.
The investment of Rs 178.15 crore (about $24 million) translates into a 7.02% stake in the company.
TCNS Clothing’s shares rose 9.54% during the day and closed at Rs 441.55 (about $6.06) per share, 47% higher than the company’s 52-week low of Rs 300.4 (about $4.12) apiece and 28% lower than its 52-week high of Rs 614.45 (about $8.44) apiece.
TCNS Clothing first got Matrix Partners India as a financial backer in 2011. Matrix had made a follow-on investment in 2013.
The company got listed in July 2018 and made a weak debut on the stock exchange.
TA Associates’ stake had fallen to below 29.3% through a partial exit in the company at the time of the IPO. It continues to hold that stake in the company.
Nalanda Capital has a couple of other listed apparel firms in its portfolio. It holds close to a 7.13% stake in Kewal Kiran Clothing, which owns brands such as Killer, Integriti, LawmanPg3 and Addictions.
Nalanda also holds a 7.56% stake in Jockey International’s Indian partner Page Industries.